Abstract: By means of the financial stability index and the fixed model as well as time varying model， the nonlinear correlation between financial stability and economic growth in China was tested. It was found that short-term economic growth has a strong “suppressive effect” on financial stability， but this effect tends to weaken as economic growth slows down; when economic growth is back to the appropriate speed range， the impact on financial stability manifests itself with a “pulling effect.”In the future， a moderate speed for economic growth is conducive to enhancing macro-financial stability as long as economic growth does not fluctuate strongly in the short term. In order to secure the operation of the financial system in China， the government should attach great importance to ensuring the smooth running of macroeconomic premises and monitoring the mechanism associated with economic growth and financial stability.

Key words: financial stability index, economic growth, time varying model